If you are interested in submitting a bid for a tract on the current sale list, you should do so prior to the final determination date.  For each parcel bid upon, you must indicate the royalty rate and bonus being offered.  Successful bids will be the best combination of the two variables, as determined by us.  The leases will be on our lease form, for a five-year term and with a $1.00 per net acre or $20 (whichever is greater) annual delay rental.  Tracts with less than a 25% mineral interest will require a 1/5^th royalty.

As always, we will not be obligated to accept any bid that is considered too low.  The final results will be sent only to those individuals who participate in the sale.  We expect payment within 30 days of notice of a successful bid.

 Unleased parcels, not on the current sale list, are generally available for negotiation at any time.  Generally speaking, our minimums in the Williston Basin are $15 and 16.6667%, in active gas areas it is $5 and 16.6667%, and individual tract elsewhere is $5 and 15%. 

Organizational Changes

 Change is eternal and Farm Credit is eternally changing.  Our Organization was created in 1917 as the Federal Land Bank of Spokane.  There were internal changes, but the name remained the same for seventy-one years.  Then a merger of several Farm Credit entities occurred and we became the Farm Credit Bank of Spokane.  This was effective July 6, 1988.  More mergers took place and, effective April 1, 1994, we became AgAmerica, FCB.  For eighty-one years our headquarters was located in Spokane, WA.  On January 1, 1998, AgAmerica entered into a joint management agreement with Western Farm Credit Bank and our headquarters moved to Sacramento, CA.  However, mineral management remained in Spokane.  The AgAmerica / Western agreement expired on December 31, 2001.

 On January 1, 2002, Western Farm Credit Bank signed a joint management agreement with the Farm Credit Bank of Wichita.   Western’s headquarters moved from Sacramento to Wichita, KS.  Effective October 1, 2002, the management for Western’s minerals in the States of Arizona, California, Nevada and Utah shifted from Farm Credit Mineral Operations in Spokane to FCB of Wichita (now called US AgBank, FCB).

Also, on January 1, 2002, AgAmerica, FCB signed a joint management agreement with AgriBank, FCB of St. Paul, MN.  AgAmerica’s headquarters moved from Sacramento to St. Paul, MN.  However, the management for the minerals owned by AgAmerica in its eight state territory remained with Farm Credit Mineral Operations in Spokane through December 31, 2002.

Effective January 1, 2003, AgAmerica, FCB ceased to exist.  The minerals owned by AgAmerica in the States of Iowa, Nebraska, South Dakota and Wyoming are now owned by AgriBank, FCB.  The minerals owned in the States of Idaho, Montana, Oregon and Washington are now owned by Northwest Farm Credit Services, FLCA.

Donald B. Kennedy
Northwest FCS Mineral Operations
1700 South Assembly Street
Spokane, WA 99224-2121
1-800-827-6505 x5368 or 509-340-5368
fax: 509-340-5523
don@farmcreditminerals.com